Timebanking

Timebanks, a mechanism that relies on mutual collaboration to promote sustainability and cohesiveness in communities, can leverage the use of new communication tools to lead deprived communities towards prosperity and heal the gaping omissions in public services.

Time banks effectively use people’s time and talents as currency for exchanges of value. It’s been effectively used across the world to tackle explicit local issues, such as childcare provision or urban regeneration. It’s also been used to reach those from socially excluded groups who have unmet needs, such as minority groups, single parents, and the unemployed. Time banks have been successful in delivering small but important local results because they excel at building networks of reciprocal social relations, trust, civic participation and community solidarity.

Time banks rely on directories of activities and participants to track the variety and availability of services offered. Often, knowing in advance when we will have free time to spare is difficult to anticipate.

Time banks have traditionally focused on involving participants from marginalized communities to help themselves. Today, with an online community eager to get involved, and with the emergence of tools that facilitate collaboration, time banks shouldn’t limit their sourcing to local resources, but instead take advantage of the “global brain” (in projects that would benefit from this type of input) to solve community problems and improve social cohesiveness. Time banks complemented by effective communication tools offer a great model to bridge local community participation with external resources, creating strong local communities that branch outward.

Probably the largest time exchange in the world is the Furai Kippu in Japan. Fureai Kippu (“Caring Relationship Tickets”) was created in 1995 to help families who had migrated to other parts of Japan care for their elder family members that they became separated from. Seniors can help each other and earn the hour credits, family members can earn credits and transfer them to their parents who live elsewhere, or users may keep credits for when they become sick or elderly themselves.

Time exchanges have been around for over a 100 years, presumably much longer in various forms, many undocumented.

During the last two great depressions in the US, hundreds of thousands (possibly millions) of people organized to meet their basic needs when the mainstream economy and centralized monetary system failed them. Unemployed poor folks got together to create time dollar stores, cooperative mills, farms, healthcare systems, foundries, repair and recycling facilities, distribution warehouses, health care systems, and a myriad of other service exchanges.

Many of these were based on the hour as a unit of account, and often everyone’s hour was equal and could either be exchanged for another hour of service or the equivalent in goods.

Modern forms of time exchange, called Timebanks and LETS (Local Employment Trading Systems), have been around since the 1980’s. Now with unemployment topping 10 percent (likely twice that, given recording problems), time exchanges are making a come-back.

Timebanks USA, a system of over 120 timebanks in the US and a few other countries, was developed by activist lawyer Edgar Cahn as a way to help the underprivileged and underserved help each other through an organized system of reciprocity. In the following interview, Cahn explains the basic principles behind timebanks:

Official Timebanks purchase software that provides a ready-made, standardized directory and accounting system of individuals, and sometimes nonprofits or government agencies, that are willing to provide services to their communities and receive help in return.

Timebank coordinators help create matches between people who need things and others who can help meet those needs, and they keep track of completed transactions in the system. No money is involved, and everyone’s hour is equal, which is one of the features that enabled Timebanks to receive an official IRS income tax exemption declaration so people on disability, social security, unemployment and other government benefits can participate without penalty.

The egalitarian nature of the system ensures that people will be able to purchase the services that they need without toiling endlessly for high priced services like in the market economy. People can also trade goods with the stipulation that their price be based on the amount of time involved in producing the goods and not their market value. Timebanks’ most successful application has been to provide a means for at-risk youth who have gone to court to do service for their community.

LETS systems also operate without money (except for fixed costs like gas or paper copies), but the value of time or goods may be linked to its market value.

Every community determines its own rules, so every LETS is a little different. LETS are now mostly online accounting and directory systems just like Timebanks, but they have also taken the form of paper ledgers, checkbooks, paper currencies, and time-based stores.

When one person provides service or goods to another, the giver receives credit in her account and the receiver gets a debit to his account so the system is always in balance. People manage their own accounts and make payment over the internet by logging into their personal account. Businesses, nonprofits and government may also have accounts if they are involved in reciprocal community exchange. Some systems have account balance limits, others don’t or merely flag high or low balances and then contact members to help them figure out how to spend or earn their credits.

Probably the largest time exchange in the world is the Furai Kippu in Japan. Fureai Kippu (“Caring Relationship Tickets”) was created in 1995 to help families who had migrated to other parts of Japan care for their elder family members that they became separated from. Seniors can help each other and earn the hour credits, family members can earn credits and transfer them to their parents who live elsewhere, or users may keep credits for when they become sick or elderly themselves.

Free open source software is now available for any community to tailor a time exchange to its own needs and to reflect the local culture. Many of these projects also have regular in person meetings, swaps, potlucks, etc. to help facilitate exchange, trust and community building.

While we may not have many dollars these days, most people do have some time. Instead of paying professionals who we may never see again to provide services, we can use time exchanges to find neighbors who might provide service in exchange for hour credits, thereby saving scarce US dollars for things like rent and medicine.

In the process, people get to know and trust their neighbors, establishing caring relationships that can help reweave the fabric of our communities and replace our culture’s over-reliance on individual financial security.

One Response to “Timebanking”

[…] a helping program that functions like a community, rather than like charity?¨ Cahn continues. ¨Time Dollars may appear to compromise the spirit of volunteerism, but that is mainly because we have drifted so […]